The COVID-19 pandemic brought unprecedented economic challenges, and in response, the U.S. government issued several rounds of Economic Impact Payments (EIPs), commonly known as stimulus checks. These payments were a lifeline for millions, providing crucial financial support during uncertain times. However, a significant number of individuals, particularly renters, found themselves in a unique position where they either didn’t receive their checks or were unsure how to claim them.
If you’re a renter who believes you were eligible for a stimulus check but never received it, you’re not alone. This comprehensive guide will walk you through why you might have missed out and, more importantly, how you can still claim the money you’re owed through the Recovery Rebate Credit.
Understanding the Stimulus Checks: A Quick Recap
Before diving into how to get your money, it’s essential to understand what these payments were and why some might have slipped through the cracks. The government issued three main rounds of EIPs:
- EIP 1 (CARES Act, Spring 2020): Up to $1,200 for eligible individuals, plus $500 per qualifying child.
- EIP 2 (Consolidated Appropriations Act, Winter 2020/2021): Up to $600 for eligible individuals, plus $600 per qualifying child.
- EIP 3 (American Rescue Plan, Spring 2021): Up to $1,400 for eligible individuals, plus $1,400 per qualifying child.
These payments were technically advances on a tax credit called the Recovery Rebate Credit (RRC). The IRS primarily used information from your most recently filed tax return (2019 or 2020) or, for non-filers, data from federal benefits agencies (like Social Security or VA) to determine eligibility and send out the payments.
Eligibility Criteria: Were You Qualified?
To claim any of the stimulus payments, you generally needed to meet the following criteria for the respective tax year:
- Social Security Number (SSN): You generally needed a valid SSN (or an Adoption Taxpayer Identification Number – ATIN for EIP 3).
- Not a Dependent: You could not be claimed as a dependent on someone else’s tax return. This is a crucial point for many young adults or those living with family.
- Adjusted Gross Income (AGI) Limits: Your income had to be below certain thresholds. Payments began to phase out above an AGI of $75,000 for single filers, $112,500 for heads of household, and $150,000 for married couples filing jointly.
- U.S. Resident: You had to be a U.S. citizen or resident alien.
It’s important to remember that eligibility was based on your situation in the tax year the EIP was related to (2020 for EIP1 & EIP2, 2021 for EIP3). If your situation changed (e.g., you had a child, or your income decreased) between the year the IRS used and the year the credit applies, you might be due more money.
The Renter’s Unique Position: Why You Might Have Missed Out
While stimulus checks were intended for broad distribution, renters often faced specific hurdles that led to missed payments:
- Below the Tax Filing Threshold: Many renters, particularly those in low-income brackets, may not have been required to file federal income tax returns in 2019 or 2020 because their income fell below the standard deduction. Since the IRS primarily relied on tax filings to identify recipients, non-filers were often overlooked.
- Lack of Current Information with the IRS:
- No Direct Deposit Information: If you didn’t file taxes, or if your banking information changed, the IRS wouldn’t have had a direct deposit account for you.
- Address Changes: Renters often move more frequently than homeowners. If your address changed and the IRS didn’t have your updated information, paper checks could have been sent to an old address and returned or lost.
- No Federal Benefits: While the IRS used data from Social Security, VA, and other federal benefit agencies to identify some non-filers, not all eligible individuals received these benefits.
- Being Claimed as a Dependent: Young adults living independently but still claimed as dependents by parents (even if erroneously) were ineligible for their own checks.
- ITIN Holders: While EIP 3 allowed for some ITIN holders to receive payments if they had an eligible SSN in the household, previous rounds were more restrictive, excluding many who pay taxes using an ITIN.
- Unaware of the "Non-Filer" Tool (Now Closed): For a period, the IRS offered an online "Non-Filers" tool for individuals to provide their information to receive stimulus checks. Many eligible non-filers, including renters, may have been unaware of this tool or missed its deadline.
The Solution: The Recovery Rebate Credit (RRC)
If you believe you were eligible for a stimulus check but didn’t receive it, or received less than you were due, the good news is that you can still claim your money. The only way to do this is by filing a federal income tax return and claiming the Recovery Rebate Credit (RRC).
What is the Recovery Rebate Credit?
As mentioned, the stimulus checks were actually advance payments of the RRC. If you didn’t receive the advance, or received only a partial amount, you can claim the full credit (or the remainder) when you file your tax return for the relevant year.
- For EIP 1 and EIP 2: These payments relate to the 2020 tax year. You would claim any missing amounts by filing an original 2020 tax return (Form 1040 or 1040-SR).
- For EIP 3: This payment relates to the 2021 tax year. You would claim any missing amounts by filing an original 2021 tax return (Form 1040 or 1040-SR).
Important Note: The deadlines for filing original tax returns and claiming refunds generally expire three years from the tax due date. For 2020, that was April 15, 2024. For 2021, it’s April 15, 2025. Don’t delay!
Step-by-Step: Claiming Your Recovery Rebate Credit
Filing a tax return to claim your RRC might sound daunting, especially if you haven’t filed before, but it’s a straightforward process.
Gather Your Documents:
- Social Security Number (SSN): For yourself and any qualifying children.
- Identity Verification: A valid photo ID (state ID, driver’s license).
- Income Information (if any): Even if you had very little income, gather any W-2s, 1099s, or records of self-employment income. If you had no income, that’s fine too; you’ll still indicate that on the tax form.
- Notice 1444, Notice 1444-B, Notice 1444-C (if received): These notices from the IRS indicated how much stimulus you were sent. If you have them, they are useful for reconciliation. If you don’t have them, don’t worry – you can still proceed.
- Prior Year’s AGI (if you filed): If you filed a prior year return, you might need your Adjusted Gross Income (AGI) from that return for e-filing verification.
Choose Your Filing Method:
- IRS Free File Program (Recommended for low-to-moderate income): If your Adjusted Gross Income (AGI) is below a certain threshold (it changes yearly, check IRS.gov), you can use IRS Free File. This program partners with commercial tax software providers to offer free online tax preparation and e-filing. This is often the easiest method for non-filers.
- Volunteer Income Tax Assistance (VITA) or Tax Counseling for the Elderly (TCE) Programs: These IRS-sponsored programs offer free tax help to people who generally make $64,000 or less, persons with disabilities, and limited English-speaking taxpayers (VITA), or those aged 60 and older (TCE). Certified volunteers prepare basic tax returns for free. Search "IRS VITA locator" online to find a site near you. This is an excellent option if you need in-person assistance.
- Tax Software: If you’re comfortable, you can purchase commercial tax software (like TurboTax, H&R Block, TaxAct, etc.). Most will guide you through claiming the RRC. Be aware that free versions might have income limits.
- Tax Professional: A certified public accountant (CPA) or enrolled agent can prepare your return, but this comes with a fee.
Complete Form 1040 (or 1040-SR):
- Line 30: This is where you’ll claim the Recovery Rebate Credit. The tax software or tax preparer will help you calculate the correct amount based on your eligibility and what you did or did not receive.
- Input your income (even if zero): Don’t be afraid to report $0 income if that’s accurate. The RRC is based on eligibility, not necessarily on having taxable income.
- Direct Deposit Information: Ensure you provide accurate bank account and routing numbers for your refund to be direct deposited. This is the fastest way to receive your money.
E-File or Mail Your Return:
- E-filing: This is the fastest and most secure way to submit your return. If using Free File or commercial software, follow their instructions.
- Mailing: If you mail a paper return, keep a copy for your records and send it certified mail with a return receipt requested. This provides proof of mailing. Be aware that paper returns take significantly longer to process.
Special Considerations for Renters
- No Income/Very Low Income: Even if you had no income or income below the filing threshold, you still need to file a tax return to claim the RRC. The RRC is a refundable credit, meaning you can get money back even if you don’t owe any taxes.
- Homeless Individuals: If you are experiencing homelessness, you can still file a tax return. You can use a trusted friend or relative’s address (with their permission) or the address of a shelter, post office box, or general delivery from the U.S. Post Office.
- Deceased Individuals: If an eligible person passed away before receiving their stimulus payment, their surviving spouse or executor can claim the RRC on their final tax return.
- Children Born in 2020 or 2021: If you had a child in 2020 or 2021 who was not accounted for in your EIPs, you can claim the additional stimulus amount for them as part of the RRC on your 2020 or 2021 tax return, respectively.
Important Tips and Warnings
- Beware of Scams: The IRS will never call, text, or email you asking for personal or financial information related to your stimulus check. Do not click on suspicious links or provide information to anyone claiming to be from the IRS outside of official channels.
- Keep Records: Once you file, keep a copy of your tax return and any related documents for at least three years.
- Landlords Cannot Help: Your landlord has no role in helping you claim a stimulus check. This is a matter between you and the IRS.
- Don’t Delay: While there are deadlines, it’s always best to file as soon as possible to avoid any further delays in receiving your money.
Where to Find Help
- IRS Website (IRS.gov): The official source for all tax information. Search for "Recovery Rebate Credit" or "Economic Impact Payments."
- IRS Taxpayer Advocate Service: If you’re experiencing significant difficulties with the IRS, the Taxpayer Advocate Service (TAS) can help.
- VITA/TCE Programs: As mentioned, these free tax preparation services are invaluable.
- Local Community Organizations: Many non-profits and community centers offer assistance with tax filing or can direct you to appropriate resources.
Claiming your stimulus check through the Recovery Rebate Credit is your right. While the process requires filing a tax return, the resources available make it accessible even for those who have never filed before. Don’t let the complexity deter you; take the necessary steps to secure the financial support you were eligible for.